Pertamina still struggling to secure additional LNG cargoes S. Korea bound

State oil and gas company Pertamina said it was still holding talks with fertilizer maker PT.Pupuk Kalimantan Timur (PKT) to persuade the company to push forward its regular maintenance and turnaround of fertilizer plants to enable Bontang NGL to supply for extra cargoes of LNG that South Korea is desperately seeking.

?If PKT can be persuaded to move forward its regular maintenance schedule to March, then we will be able to secure at least two cargoes of LNG for March shipping. Besides, with national planting season delayed and the high level of fertilizer stock PKT now have, I think there is a possibility that they will agree to Pertamina?s proposal,? said downstream director Muchsin Bahar last week.

PKT consumes about 150 million standard cubic feet per day (MMCFD) of gas as feedstock.

There has been gas supply shortage in East Kalimantan lately since East Kalimantan gas producers had not been able to increase production to meet increasing demand in LNG, especially from South Korea, for the first half year shipment.

A source at PKT, however, said that the company would most likely reject Pertamina?s proposal.

?Everything has been pre-arranged carefully, including maintenance schedules. We can not be forced to suddenly stop production and conduct turnaround and maintenance before time,? said a source. (alex)